Can't obtain period fixed effects

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antionio
Posts: 6
Joined: Sun Jan 23, 2011 6:20 am

Can't obtain period fixed effects

Postby antionio » Wed Feb 09, 2011 11:08 am

Hi everybody!

I'm trying to estimate a fixed effects model in eviews 7 and I have a small problem.
When I go to Redundant Fixed Effects - Likelihood Ratio Test, I only get Cross-section F and Cross-section Chi-square.
I would also like to obtain period fixed effects.

My model looks like this: y c x1 x2 x3 x4. What do I need to write in the equation in order to get period fixed effects as well?

EViews Glenn
EViews Developer
Posts: 2682
Joined: Wed Oct 15, 2008 9:17 am

Re: Can't obtain period fixed effects

Postby EViews Glenn » Wed Feb 09, 2011 11:14 am

The redundant test only tests the effects that are already in the model. You have to estimate the original equation using period effects.

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13585
Joined: Tue Sep 16, 2008 5:38 pm

Re: Can't obtain period fixed effects

Postby EViews Gareth » Wed Feb 09, 2011 11:15 am

If you estimate your equation with only cross-section effects, the test will only test cross-section effects.

If you estimate your equation with only period effects, the test will only test period effects.

If you estimate your equation with both cross-section and period effects, the test will test both.

antionio
Posts: 6
Joined: Sun Jan 23, 2011 6:20 am

Re: Can't obtain period fixed effects

Postby antionio » Thu Feb 10, 2011 4:20 am

Can you please tell me how to specify the model in order to obtain both cross-section and period effects?

How should the equation look like?

y .....................

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13585
Joined: Tue Sep 16, 2008 5:38 pm

Re: Can't obtain period fixed effects

Postby EViews Gareth » Thu Feb 10, 2011 9:04 am

When you estimate your equation there is an Panel Options tab that lets you set the effects specification.

antionio
Posts: 6
Joined: Sun Jan 23, 2011 6:20 am

Re: Can't obtain period fixed effects

Postby antionio » Sat Feb 12, 2011 4:58 am

Thank you, I managed now.

However, there are still some issues.

From the Redundant Fixed Effects Tests, now obtain three outputs with estimates (see the attachment)
FE with EVIEWS.pdf
(154.77 KiB) Downloaded 500 times
but I also get an outout when running the model, before I go the Redundant Fixed Effects Tests option.
When I report the results, which output should I look at?

In the panel options tab there is also a box called Coef covariance method. How do I know which one to use in my model?


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